Sustainability in Shipping Industry, ESG Performance Reporting
Sustainability in Shipping Industry ESG Performance Reporting
Shipping industry is required to comply with new regulatory requirements, standards and market trends around Sustainability, including the protection of the Environment and the mitigation of climate change effects. These apply to the entire value chain, from the construction of a new building at the shipyard, to the recycling of the ship at the end of its useful life. As a result, shipping companies are called to respond to the new monitoring and reporting requirements related to Environmental, Social and Governance (ESG) factors, measuring the impact of their activities and adapt the way they operate to meet industry’s goals and targets.
ESG is rising in prominence due to changes in public sentiment, values and behavior, impacts on financial value, climate change risks and increasing of opportunities in sustainable investing. To meet the expectations of various stakeholders, shipping companies should go beyond compliance and become more transparent to their stakeholders by disclosing their ESG performance and commitments.
By issuing an ESG report, shipping companies have the opportunity to demonstrate to the public their commitment to protect the environment and marine biodiversity, to highlight the high health and safety standards for crew and office employees welfare and to promote ethical principles and corporate governance best practices. Moreover, by demonstrating high ESG performance, shipping companies can attract investors, customers and have access to shipping finance.
ESG report disclose information related to the Environmental, the Social and the Governance factors, which is integrated in the decisions, actions and policies of shipping companies.
The initial IMO GHG strategy demands from shipping industry to reduce CO2 emissions at least 40% by 2030 and total annual GHG emissions at least 50% by 2050 compared to the previous years. For this purpose, IMO adopted a Data Collection System (DCS) requiring from ships over 5,000 gross tonnage to submit their annual administration reports on fuel oil consumption. In order to comply with those shipping companies shall monitor report and verify maritime vessels’ CO2 emissions annually and can share their performance with stakeholders through ESG report.
In a fast changing world, shipping sector will strive to improve and promote gender diversity and equal opportunity, targeting in a gender-balanced environment with loyalty, creativity, innovation and ultimately performance from crew and office employees. On top of that, health, social and security systems are steadily implemented in shipping sector the last two decades. Through ESG report, shipping sector by promoting its Social factor has the opportunity to share these initiatives to the rest of the world and increase the awareness of the public.
Moreover, a modern corporate governance structure is considered necessary to be adapted from the modern shipping companies increasing transparency and reduce business exposure by focusing into their business strategy, ethics and policies for the day-to-day operation.
Aegean Shipping Management issued its first Annual Environmental, Social and Governance Report (ESG), for the year 2019, which is publicly available over the Company’s web- site. The ESG report describes our Company’s ESG strategy and approach with actual performance compared to previous years, industry benchmarks and future targets which include plan to increase our disclosures and to take over additional targets on these below three issues regarding our continuous improvement and future sustainability performance.
In our Environmental protection approach, we put great value to the protection of the environment with energy and environmental policy, to environmental regulations compliance (IMO DCS Database), to energy efficiency, to GHG emissions and take measures to minimize our environ mental footprint with ship recycling, Ballast Water Management, Waste Management and use of eco-friendly chemicals and lubricants. Based on MRV Shipping Regulation (EU 2015/757), we monitor, report and verify (MRV) carbon emissions for all ships on voyages to, from and between EU ports. In addition, we participate in voluntary environmental activities such as the Global Voluntary Coastal Cleanup movement, in order to contribute in keeping healthy our ecosystem.
In our Social protection approach, we have established high health and safety standards that are applying with our Health and Safety Management System, concentrated in development and welfare for our on-board personnel and on-shore employees. We place a great value on maintaining sustainable and responsible long-lasting relationships with reliable and qualified suppliers and we implied in a wide range of community investment initiatives such as scholarships and donations.
In our corporate Governance approach, we have established an Executive Committee, which is responsible for the day-to-day management of the company and performance of activities related to the delivery of our services. Furthermore, we are dedicated to encourage an honest and trustworthy working environment both in our on-board personnel and in on-shore employees with strong ethical values, Whistleblowing Policy and Harassment and Bullying Prevention Policy.